Team Paper Seminar of

Management Accounting
─Dell Technology Inc.

Group 3
Pratiwi Bestari 1610532025
Rayhan Zuhra Rinaldi 1610532021
Ratu Shavira 1610532025

OVERVIEW OF DELL TECHNOLOGY INC.

Dell Inc. is one of the leading seller of computer systems in the world, that conquer global
market share of more than 15 percent in industry. Dell markets desktop personal computers,
notebook computers, network servers, workstations, handheld computers, monitors, printers,
high-end storage products, and a variety of computer peripherals and software. The firm also
has moved into the consumer electronics arena, offering LCD televisions, projectors, and other
products. Dell sells its equipment directly to consumers, small to large businesses, government
agencies, and healthcare and educational institutions through dedicated sales representatives,
telephone-based sales, and online via the company web site.

Vision and Mission

Quoted from Dell ,“At Dell Technologies, our purpose is to drive human progress, through
greater access to better technology, for people with big ideas around the world.” in other words
Dell's vision is to be the most successful computer company in the world at delivering the best
customer experience in markets we serve. In doing so, Dell will meet customer expectations
of:

 Highest quality
 Leading technology
 Competitive pricing
 Individual and company accountability
 Best-in-class service and support
 Flexible customization capability
 Superior corporate citizenship
  Financial stability

Company Business
Dell Technologies is a strategically aligned family of businesses, poised to become the
essential infrastructure company, from the edge to the core to the cloud, as we continue our
mission to advance human progress through technology. Dell seek to accomplish this by
executing two, related, high-level strategic initiatives: helping its customers transform their
businesses through digital, IT, workforce, and security transformation, while extending leading
market positions in client solutions and IT infrastructure. Dell Technologies brings together
the entire infrastructure from hardware to software to services. Dell Technologies is a leader in
the traditional technology of today and a leader in the cloud-native infrastructure of tomorrow.
Through Dell recent combination with EMC, Dell Technologies offers next-generation
solutions through our Client Solutions Group, Infrastructure Solutions Group, VMware, Inc.,
RSA Information Security, SecureWorks Corp., Pivotal Software, Inc., Boomi, Inc., and
Virtustream, Inc. Dell solutions enable digital transformation and encompass software-defined
data centers, all-flash arrays, hybrid cloud, converged and hyper-converged infrastructure,
cloud-native software application development tools, mobile, and security solutions.

In Product and services, Dell design, develop, manufacture, market, sell, and support a
wide range of products and services.

1. Client Solutions Group ("CSG") — Offerings by CSG include branded

hardware, such as personal computers, notebooks, and branded peripherals,
such as monitors and projectors, as well as third-party software and peripherals.
2. Infrastructure Solutions Group ("ISG") — includes Virtustream product and
service offerings. Virtustream's cloud software and infrastructure-as-a-service
solutions enable customers to migrate, run, and manage mission-critical
applications in cloud-based IT environments, and represent a key element of our
strategy to help customers support their applications in a variety of cloud native
environments.
3. VMware — VMware provides compute, cloud, mobility, networking and
security infrastructure software to businesses that provides a flexible digital
foundation for the applications that empower businesses to serve customers
globally

Implementation of Management Accounting in Dell Tech Inc.

Dell’s go-to-market strategy includes a direct business model, as well as channel
distribution. This direct business model emphasizes direct communication with customers,
thereby allowing Dell to refine its products and marketing programs for specific customers
groups, and its continue to pursue this strategy. Dell utilize contract manufacturers throughout
the world to manufacture or assemble the products under the Dell Technologies brand as part
of the strategy to enhance variable cost structure and to achieve its goals of generating cost
efficiencies, delivering products faster, better serving their customers, and building a world-
class supply chain. In addition to direct business model, Dell rely on a network of channel
partners to sell their products and services, enabling us to efficiently serve a greater number of
customers. Dell conduct operations utilizing a formal, documented quality management system
to ensure the products and services satisfy customer needs and expectations.
 Dell purchase materials, supplies, product components, and products from a large
number of qualified suppliers. In some cases, where multiple sources of supply are not
available, Dell rely on single-source or a limited number of sources of supply, Its believe it is
advantageous to do so because of performance, quality, support, delivery, capacity, or price
considerations. Dell believe that any disruption that may occur because of their dependence on
single-or limited-source vendors would not disproportionately disadvantage us relative to
Dell’s competitors. Testing and quality control are also applied to components, parts, sub-
assemblies, and systems obtained from third-party suppliers.

Dell have cut their inventories from having ’20 to 25 days of inventory’ to having ‘no
warehouse’ and no more than two hours of inventory in its factories’ Dell only has 2 hours
worth of inventory in their manufacturing plants. The company assembled computers based on
customer orders and “held no finished goods inventory of standardized machines”. Holding no
inventory allowed Dell to reduce its costs.

Dell business model generally gives us flexibility to manage product backlog at any
point in time by expediting shipping or prioritizing customer orders toward products that have
shorter lead times, thereby reducing product backlog and increasing current period revenue.
Product backlog at any point in time may not result in the generation of any predictable amount
of net revenue in any subsequent period. Just-in-time also has a much faster setup and saves
resources by streamlining production systems. This as a result prevents overproduction of
computers, which will therefore help Dell with the elimination of waste within their company.

Discussion
The competitive advantages of Dell over its competitors are that Dell has well thought
out JIT inventory system and very good supplier integration. This has helped in cutting down
inventory costs within the business and has also reduced the lead time in serving customer
orders for computers and laptops. Dell realised that this would be a excellent opportunity for
their business processes therefore.

Conclusion